New Building Blocks with EE Patrick Grace, CPIM QAD Senior Solutions Consultant March 16 th, 2015

2 The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. Safe Harbor Statement

3

Choices of Tools? 4

5

6

7 What Version Are You On? Character? Net.UI? EE? Quick SE / EE Poll?

8

Benefits of QAD Enterprise Financials EE Financial “New Terms” Review Components of QAD Enterprise Financials New Features in EE 2015 Questions & Answers Today’s Agenda 9

Companies Need A Way To Make Sense Of All The Data Being Collected Within Their Organization – Need Increased Visibility. Need To Be Able To Answer Strategic Business Questions. They Are Now Being Held Accountable And Therefore Need To Control And Comply. Companies Are Growing Worldwide And They Need A System That Will Allow Them To Benefit From Their Global Operations. They Want A System That Is Easy To Use. Business Requirements Today 10

Can upgrade provide new business value? Productivity Business Justification Examines The Overall Impact To Your Organization’s Performance Cost Can customizations be reduced ? Upgrade Drivers Today 11

Take Advantage Of New Functionality Reduce Customizations Reduce Operational Costs Respond To Globalization And Consolidation Needs Increase User Productivity Ensure Compliance Optimize Application And System Performance Drive Lean Principles Throughout The Organization Benefits of Upgrading: 12

Take Advantage Of New Functionality Reduce Customizations Reduce Operational Costs Respond To Globalization And Consolidation Needs Increase User Productivity Ensure Compliance Optimize Application And System Performance Drive Lean Principles Throughout The Organization Benefits of Upgrading: 13

14

15 SE – Basic Requirements

16 EE – Comprehensive with Options

More, faster and better: Database - Shared Set -Entity = “Balanced Set of Books” -Domain = Group of Entities with same Base Currency Layers or “Books” Statutory Currency Daybooks = Source Identifiers Supplementary Analysis Fields = SAF Intercompany vs. Cross Company G/L Account (Components) Business Relationships FRW – Financial Report Writer Master Files – Suppliers, Customers, etc More … New Enterprise Edition Concepts 17

System Wide Data Shared Set Data Domain Data Entity Data Site Data Location Domain Data Entity Data Site Data Location Site Data Location Shared Set Data Domain Data Entity Data Site Data Location Site Data LocationEntity Data Site Data Location Site Data Location Database Structure Enterprise Edition e.g. Taxes, security numbering, … e.g. Base currency, statutory currency, operational controls, … e.g. COA, suppliers, customers, … e.g. Currency, users, languages, countries … e.g. Inventory, costing, planning, … 18

Corporate EE DatabaseAmericas Domain USD Chart of Accounts SuppliersCustomer Exchange Rates Domain CAD Chart of Accounts SuppliersCustomer Exchange Rates Domain MXP Chart of Accounts SuppliersCustomer Exchange Rates Europe Domain EUR Chart of Accounts SuppliersCustomer Exchange Rates Domain GBP Chart of Accounts SuppliersCustomer Exchange Rates Domain CHF Chart of Accounts SuppliersCustomer Exchange Rates Asia / Pacific Domain YEN Chart of Accounts SuppliersCustomer Exchange Rates Domain AUD Chart of Accounts SuppliersCustomer Exchange Rates Domain CNY Chart of Accounts SuppliersCustomer Exchange Rates Shared Set Benefits Enterprise Edition 19

SE – G/L Account Structure Primary GAAP Acct Sub-Account Cost Center Project Entity Yr/Pd header level line level 20

EE - G/L Account Structure Primary GAAP Acct Sub-Account Cost Center Project SAF’s Entity Yr/Pd Layer/Book Daybook header level line level can automatically retrieve SAF data from Operational transactions Site Product Line Region (Customer) Customer Type Supplier Type Item Type Item Group Up to five ‘ supplementary analysis fields’ on a posting line Other GAAP Account Intercompany key Open item key extra keys on line level Allows - actuals in value (in tc, bc, sc) - actuals in quantities - budgets 21

22 Accounting Layers / Books Enterprise Edition G/L Transactions Official Layer = SE

23 Accounting Layers / Books Enterprise Edition G/L Transactions IFRS Layer Mgmt Layer “ What If” Layer Local GAAP Layer Audit Layer Official Layer = SE

Accounting Layers and Reporting 24

Daybook Accounts Payable Journal Entry Banking Year-End Close Etc. Layer Type Official Management Transient Layer / Book IFRS Adjustment Auditor US GAAP Adjustment “What If” 25 Daybooks (Journal Identifiers)

Daybook Accounts Payable Journal Entry Banking Year-End Close Etc. Layer Type Official Management Transient Layer / Book IFRS Adjustment Auditor US GAAP Adjustment “What If” 26 All transaction posting lines are recorded in daybooks (journals) for ease of summarization. Journal Entry “Identifiers” – filter and search capability Multiple daybooks are possible Daybooks can be assigned to any of the accounting layers Daybooks (Journal Identifiers)

Daybooks With No Daybooks Defined - SE -Journal entries -Account – Sub – Cc – Source - Amt IC IC

Daybooks With Daybooks Defined EE -Journal entries -Account – Sub – Cc – Source –Daybook Amt IC RCT-UNP IC ISS-SO

SAF – Supplementary Analysis Field Hierarchy Structure – One Per G/L Account Unlimited Codes Table 29

Customers Business Relationship Corporate Group Suppliers Business Relationship Corporate Group Employee Business Relationship Inter Facility 1Inter Facility 2 Business Relationship Business Relation Hierarchy 31

32 Data Exchange Options in QAD Manual QXtend -Third Party Apps XML – Web Data XLS – Excel CSV – Comma Separated Value Integrated Customization Toolkit EDI eCommerce

33

QAD Business Intelligence Long term trend analysis Both QAD and non-QAD data Easy access (web, mobile) QAD Business Intelligence Long term trend analysis Both QAD and non-QAD data Easy access (web, mobile) QAD Enterprise Applications Inquiries & Standard Reports Operational Metrics Reporting Framework Browses & Collections QAD Enterprise Applications Inquiries & Standard Reports Operational Metrics Reporting Framework Browses & Collections Operational Tactical Strategic Executives CEO, COO, CIO, CFO Executives CEO, COO, CIO, CFO Dept. Managers Finance, Mfg., Sales... Dept. Managers Finance, Mfg., Sales... Operations Prod. Mgr, Planners Warehouse, Staff Operations Prod. Mgr, Planners Warehouse, Staff QAD Reporting - Matching Need To Solution 34

Different Flavors of Information By Product Line By Market Segment Other GAAP 35

36

37 Your Report Report Cube “Data” Drill Down Browse Report Tree “Rows” Analysis Codes Reusable Column Group “Columns” Calculated Layout Report Master “Worksheet” Combine Components Report Components

Different Flavors of Information IFRS Local GAAP US GAAP 38

39 Browses: -Ad Hoc Browses -Standard Browses -Collections -Roles Operational Metrics Reporting Framework Role Based Dashboards Excel Integration SAF – Supplemental Analysis Fields FRW - Financial Reporting Writer Consolidation Views Business Intelligence QAD Financial Reporting Options

40

Multi-Entity, Multi-Currency, Multi- Layer Support for recurring/reversing entries Extensive drill-down capabilities Flexible account structure with up to 5 optional Supplementary Analysis Fields per account combination Posting templates Multi-stage period closing process including period marks, closing validations and reporting Separate period for year-end corrections Enhanced Allocations Bi-directional Microsoft Excel ® integration for journal entries as well as for account setup New Report Writer QAD General Ledger Ensures all financial data is quickly accessible for drill down and corporate reporting 41

42 Journal Entry Cross Co Excel Integration

43 Entity Group

44 Multi-Entity Example

45 Monitoring The Closing Status

QAD Budgeting Quick, flexible, collaborative budgeting process for the finance manager Supports multiple versions of budgets Budget periods can be different from accounting periods Recording of forecasts On-line budget checking and warnings Import budget data from Microsoft Excel ® Live modification of budgets using Microsoft Excel ® Supports multi-level budgeting and actuals coming from multiple companies 46

47 2. Excel1. Budgeting Software Financial Budgeting Options

48 General Ledger Excel QAD Excel Integration

49

Distribute costs and revenues to appropriate accounts, sub- accounts, cost centers and projects Supports recursive allocations Reuse result of previous allocation run as input for the next Validate results of allocation run before final posting Supports different allocation methods, including proportional based on usage/activity For instance distribute electricity costs to production centers/departments based on kWh Allocations Allocation provides control and consistency 50

Allocation Definition Fraction Source Target *= Denominator Numerator 51

QAD Multiple Currency Do business in any currency Process, pay and receive money in any currency Set up functional currencies by business unit Multiple Currency Types Dual Base Currency Plus Transaction amounts always stored in transaction currency + in primary base (functional) currency and secondary base (statutory) currency Extensive revaluation options, both for functional and statutory currency Allows a global organization to conduct business any currency, and generate consolidated and management reporting in the mandated currency 52

Dual Base Currency : Transaction amounts always stored in transaction currency, base currency and optionally statutory currency Multiple Base Currencies 53

QAD Accounts Receivable Flexible aging reports Retro Billing allows price changes on items after items shipped and invoiced Self Billing Customer activity dashboard Sharing of customers and credit limits between business units Automatic netting of invoices and credit notes Netting between common customers and suppliers Deduction Management Write-offs and open item adjustments Dunning letters automatically generated Full control on the total process between billing and collecting 54

QAD Credit Management Ensures visibility of customers with credit issues for the finance manager Extensive and flexible credit check (Days & Dollars) Based on percentage of sales Fixed credit limit Maximum days of overdue Option to overrule Share credit limit of shared customers across companies Configurable warning level Dashboard for customer activity and credit information Multi level dunning letters 55

QAD Accounts Payable Variances are generated based on 3-way match of PO, receipt and invoice Flexible matching and approval process Automate process of entering and approving supplier invoices with Scan daemon, document management and workflow routing Evaluated Receipts Settlement (ERS) eliminates the need to enter supplier invoices Netting between common customers and suppliers Write-offs and open item adjustments Supplier activity dashboard Streamline the process from purchase order to supplier payments 56

57

Electronic import of bank statements Supports US Lockbox processing Extensive support for automated payments, including drafts and direct debit Support for local payment and file formats using QAD Internationalization Flexible mapping of payment formats using EDI eCommerce Petty cash handling Bank account validation according to local formats including IBAN QAD Banking/Cash Management Automatic monitoring of cash flows to quickly make key decisions based on the cash position of the business 58

QAD Tax Management Serves the different sales, use and VAT taxes globally Ensures correct tax registrations and smooth tax reporting Allows global tax treatment for multiple tax environments in the same database Unlimited number of tax types and rates VAT, luxury, capped, non- recoverable Considers Geography Item status (taxable, non-taxable) Customer / Supplier status Effective date Includes flexible reporting API between Vertex Sales Tax, Avalara, etc. 59

QAD Cost Management Accurately costs parts and track variances to standards based on flexible cost components Supplements standard costing model to allow actual cost analysis Powerful tools to model and implement cost changes to standard costs Set up cost structures as required for the corporation or make them unique by plant by utilizing unlimited cost sets, multiple costing methods and cost elements Unlimited Cost Simulation 60

QAD GRC (Governance, Risk, & Compliance) Extensive set of solutions for Governance, Risk and Compliance Minimizes costs of compliance to government regulations such as Sarbanes- Oxley, IFRS and other governance requirements Extensive automated controls Enhanced Audit Trails Have full audit trail capability for data changes Tracks who made a change, when the change was made what are the prior and new value Role based security up to activity level Trade compliance using QAD TMS Access control including forced password complexity, aging and intrusion detection Helps companies stay compliant 61

Define Roles and Permissions Segregation of Duties: - Define conflicting roles User Interface depending on Role Role Based User Interface/Security 62

QAD Fixed Assets Accurately manage and track fixed assets throughout their lifecycle: from asset acquisition to disposal Multiple and user defined depreciation methods Ability to split and combine assets Support transfers and retirements Multiple concurrent depreciations to support different GAAP requirements Helps in supporting regulations such as Sarbanes-Oxley 63

Questions / Answers 64

65 AR/AP Payment Processing Year End Closing Financial Report Writer Mass Data Load Withholding tax Chinese Golden Tax What’s New in Enterprise Financials 2015 QAD Enterprise Financials 2015

66 Improved Usability -Processing Incoming Bank Files report Payment Processing Configuration Additional Payment Additional bank file import method AR/AP Payment Processing QAD Enterprise Financials 2015

67 Year End Closing QAD Enterprise Financials 2015 I need to automatically close Management layers, not just the Official Layer I want to close management layers before the official layer.

68 Extended Excel Layout Controlling Dimension and Report Burst Cube Consistency Check Enhanced UI Financial Report Writer QAD Enterprise Financials 2015

69 QAD 2015 EE – Financial Report Writer New in 2015 EE Enhanced Excel layout 60 columns COA codes Transaction detail Title and sub-title with more variables Conditional printing DR/CR Page breaks

70 Controlling Dimension & Report Burst QAD 2015 EE – Financial Report Writer Added in 2015 EE

71 Cube consistency check QAD 2015 EE – Financial Report Writer New in 2015 EE

72 Mass Data Load QAD Enterprise Financials 2015

73 Withholding Tax (Thailand) Golden Tax (China) Internationalization QAD Enterprise Financials 2015

74 Global Integration Report Smarter / Close Faster High Efficiency Guarantee compliance Value Proposition QAD Enterprise Financials 2015

75 Release status : General Available All of these enhancements are part of the QAD Enterprise Applications 2015 EE release Release Status QAD Enterprise Financials 2015

76 Report Smarter & Close faster Manage global complexity Increase operational efficiency in Finance Guarantee Compliance Summary QAD Enterprise Financials 2015

77 Summary

78 Please fill out the Survey Thank You!